Pak signs deal to handover Gwadar port to Chinese firm

February 18, 2013 20:06 IST

Pakistan and China on Monday signed an agreement to hand over control of the strategic Gwadar deep sea port to a Chinese company, with President Asif Ali Zardari saying the move would give new impetus to bilateral relations and economic cooperation.

Under the agreement for transfer of concession rights, the port will remain the property of Pakistan while the Chinese company will share profits from its operation.

Speaking on the occasion‚ President Zardari said the agreement would give new impetus to Pakistan-China relations and take bilateral political cooperation into the realm of economic cooperation.

The handing over of the operations of Gwadar port to China is a manifestation of growing ties and shows the trust that Pakistan has in the Chinese ability to deliver on infrastructure projects, he said.

The development of a trade corridor linking Xinjiang to the Middle East through Gwadar port will enhance trade between the two countries and in the region, Zardari said.

Gwadar has strategic importance for China as around 60 per cent of its crude oil comes from Gulf countries that are close to Gwadar, he said.